Weekly Business Tip #5 from Snap Finance: Helping Customers Get What They Need Most
There’s no surefire way to know the exact financial position of every customer that walks through your door. Sure, you can probably assume that they’re in the market for some furniture, but are they ready to buy right now? How badly do they need what’s on their list? How confident are they about being able to afford their purchase?
Thanks to available financing options, you don’t have to read minds or ask potentially embarrassing questions. Furniture financing makes it possible for your customers to get what they need when they need it. Chances are you’re already working with one or two financing providers for that very purpose.
However, with the nationwide COVID-19 crisis persisting, many providers are bracing for an economic recession, tightening up their criteria for loans and being even more selective about who they lend to.
So, what does that mean for your store?
It means that easy and accessible lease-to-own financing is in high demand, and that partnering with a secondary financing provider is one of the best ways to cover the gap. Check out these top benefits of lease-to-own furniture financing to see why it’s more popular now than ever before.
Flexibility is at the core of lease-to-own financing, and that flexibility is attractive for a few reasons. First, since lease-to-own agreements function differently than credit-based loans, a customer’s credit score isn’t the only factor considered for approval. This allows customers who may have bad or no credit to still get approved, which in turn means more qualified furniture customers in a position to buy.
Second, many customers appreciate the payment flexibility that comes with lease-to-own furniture financing. Credit-based loans often require a sizeable down payment at the time of purchase. Lease-to-own agreements generally require just a small processing fee. This is one advantage that makes lease-to-own options particularly accessible. Many providers, like Snap Finance, even have accelerated ownership options that can significantly reduce customers’ total cost. Like the saying goes, “Convenience is king!”
It’s Quick & EasyGetting started with lease-to-own financing is convenient too, which is good news for both furniture merchants and customers. Digital applications make the process simple and speedy, with customers being notified of their approval or denial almost instantly. Snap’s application experience is especially streamlined — shoppers can apply, get approved, and accept their agreements all from the privacy of their smartphones. They can even get preapproved before stepping foot in a furniture store, which helps them create a clearer picture of what they’ll be able to afford.
This specific kind of easy, flexible financing became popular because it filled a market need, and as the world of furniture retail continues to evolve, lease-to-own is keeping up. E-commerce is slowly but surely changing the furniture industry. The COVID-19 pandemic has sped up the pace, with brick-and-mortar furniture retailers rushing to get online shopping solutions in place to make up for slow store traffic.
If you’re taking your business online, it makes sense to make financing options available there too. Lease-to-own financing specifically is poised to make waves in the e-commerce world. Forbes dove into the exciting possibilities of this partnership in more detail, saying, “By integrating this option in their e-commerce strategy, businesses can become more affordable, while exponentially growing their sales.”
Increasing sales and giving your customers a compelling reason to shop with you at the same time sure sounds like a win-win. Make lease-to-own financing a permanent part of your business strategy today to see the benefits for yourself.
About Snap: Specially designed for the furniture industry, Snap Finance helps credit-challenged customers get what they need with fast, flexible, lease-to-own financing. Through our free EDGE program, we boost your secondary financing business by up to 30%. Contact us at 866-871-0311 or visit snapfinance.com/partner to learn how Snap can help your business.
Furniture Industry News and in depth magazine articles for the furniture retail, furniture manufacturers, and furniture distributors.
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